Blue Star Leads Compensation for GST Rate Cut Impact, Industry Eyes Festive Season Boost

Blue Star will compensate dealers for blocked GST credits following rate reductions on air conditioners and large TVs from 28% to 18%. The company aims to complete adjustments within 3-4 months. Other companies like Voltas and Godrej are adopting different approaches. The industry faces challenges due to high inventory levels and sluggish sales. Price reductions are expected, with ACs potentially becoming Rs 2,500-3,000 cheaper and large-screen TVs seeing cuts up to Rs 4,000. Despite current challenges, the industry anticipates 20-25% growth in festive season sales, particularly in the premium segments.